[QUOTE=“adamjn;604547”]EURAUD looks a great setup on the daily. I entered today on H4.
IB’s and Inverse Head and Shoulders. I know Aaron doesn’t like H&S patterns, but they should be noted for reversals imo.
Targeting 1.6 then 2.6 fibo levels.
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Nice rising wedge to boot! Looks very appealing.
I think I begin to understand your approach to inside bar(s).
When you have several children, as in this case, where do you enter trade, ignoring retracement entry for the moment?
Ok, so looking at EURAUD, the daily has inside bars, which gota break, so now you have to work out which way, so the H&S gave me confirmation to the upside, and the over all PA, so I waited for an entry on H4, which was a pin bar…
But a general rule is to enter on the break, if you enter before the break, your chances of a winner are greatly reduced.
TP 1 has been hit and SL moved.
Some motivation for y’all.
This shows how profitable IB’s are when traded right, once you get the hang of them, you will work out that they are a very profitable setup, which quite frequently has a small SL.
Check out the JPY pairs for IBs.
The problem with this setup is that the engulfing bar is “up in” the area where you are trading. In this case the PA candle is halfway into your take profit region which is not prime. A better setup would be if the bar had extended farther down below the previous candle and hadn’t extended up as far. This helps in 2 ways, one is gives us a better reward for our risk, secondly it makes for a stronger false break signal. Sometimes price just barely touches S/R line and then explodes back, but that isn’t necessarily a false break, it may just be an impulsive jump before the next leg down.
I believe it takes 100,000 units of price to move the tick volume, so there is a pretty close correlation between how many ticks are happening in a given period of time and how much money is exchanging hands. It’s one of those things you don’t need ultra accuracy, we just want to be able to see interest pick up/die down over time and I believe tick volume gives us that.
Whats this pair, I can’t read the symbol in your screenshot. Anyways, it looks great. I can’t tell from this S.S. but it looks like the pair may be in a range? If it is a ranging pair, this would be a pretty good signal for a reversal back to the other side of the range.
Yes the H&S leads into a 1-2-3. The tip of the right should is 1 once price breaks the neckline of the pattern, and you typically have a pullback to the neckline after the break which is 2.
Aaron,
Do you ever close out of trades early even after a good quality setup has formed, but has failed to break out in the direction intended.
For eg. Current AUD/NZD short of Daily Pin. Price hasnt really moved in either Direction after 14 candles or so.
So I guess what Im asking is, if you were in this trade, do you stick to your initial analysis or,
You can see price stalling and close it out for a small loss or small profit
SPX500 I think he posted 
The DJIA just formed an inside bar false break/engulfing bar on the daily today. I would say all of the indices are forming some very bearish short term price action as well as bearish long term price action.
Broadening Top
I have been noticing these all over the place lately. They are a pattern that can help you identify the end of a long running trend, perhaps letting you get on the beginning of a reversal and riding much of the movement. I have watched and studied these for a while but never traded them. The seems like viable patterns but I will need to continue to watch more of them play out to see if they are worthy to become a part of the arsenal of patterns traded here. This one will be fun to watch since it is playing out on the GBPUSD. I put most of the pattern explanation in the screenshot. If taken aggressively this type of pattern can offer 1:5 to 1:10 RR.
Hey Aaron, considering what you have said about GU. I might look for an entry, will have to look at it a bit more first.
But, check this, USDOLLAR Weekly
I know there is/are online position sizing calculator(s) out there. Being a lazy guy I got friend to help me put together an Excel spreadsheet placed on desktop for easy & convenient offline use anytime. Am sharing it here: https://dl.dropboxusercontent.com/u/32561137/FX%20Position%20Sizing%20Spreadsheet.xlsm.
Light blue cells are for data entry by user. The rest are locked against accidental unintended changes.
May the pips be with you all!
I found that images posted here are not sharp & clear. Or do I not know how to view them? Any enlightenment from anyone? 
HMMM maybe, I’ve set a retracement entry but not sure if it will get triggered.
We can never be sure with probability games!
Yeh, good question. Do we get out if price does not go anywhere after X number of bars? What wld be this number X?
Henry
Hi Adam
I note you mentioned break of IB mother candle. Shd it not be break of child candle with SL some pips away from the other end of the child? Or do you use both on different occasions?
Its the SP500 the purple line is the VBRN of 1800. I’ve set a retracement entry on this indice but tbh don’t think its going to retract back and its going straight to the VBRN. Oh well I’ll be looking for longs at 1800.
Jedi
